How peer benchmarking works

Peer benchmarking compares a company's risk scores against other companies in the same sector and of a similar size. It answers the question: is this company's risk profile typical for its industry, or is it an outlier?

Why benchmarking matters

A risk score on its own tells you how a company performs against Senserity's tests. But risk is not evenly distributed across all industries and company sizes. A construction company and a software consultancy face different regulatory environments, different financial structures, and different operational hazards. A score of 35 might be typical for one sector and unusually high for another.

Peer benchmarking adds that context. It shows you where a company sits relative to its peers, so you can distinguish between sector-wide risk characteristics and company-specific problems.

How peer groups are defined

Senserity defines peer groups using two dimensions:

Sector. Companies are grouped by their SIC code (Standard Industrial Classification), which describes their primary business activity. SIC codes are assigned by the company when it incorporates and are updated through confirmation statements. See What is a SIC code for more detail. Senserity uses the company's primary SIC code to identify the most relevant peer group.

Size band. Within a sector, companies are grouped by size. Size is determined from available data, primarily employee count and financial scale from filed accounts. This ensures that a five-person consultancy is not being compared against a multinational in the same SIC category.

The combination of sector and size band produces a peer group that is as specific as the available data allows. In sectors with a large number of registered companies, the peer group may be substantial. In niche sectors, the group may be smaller, and Senserity notes when the sample size is limited.

What is compared

Peer benchmarking produces comparisons at two levels:

Overall risk score. The company's overall score is compared against the distribution of scores for its peer group. Senserity shows where the company falls, whether it is in the lower-risk portion, the middle, or the higher-risk portion of its peers.

Category scores. Each of the nine risk category scores is compared separately. This is often more informative than the overall comparison, because it reveals which specific areas are driving any divergence. A company might be typical overall but have an unusually weak Cyber score or an unusually strong Financial score relative to peers.

Trend comparison. Where historical data is available, Senserity can show whether the company's risk profile is converging with or diverging from its peer group over time.

Safeguards and limitations

Peer benchmarking is a useful tool, but it has limitations that Senserity is designed to handle honestly:

Small peer groups. If the peer group contains fewer than a minimum threshold of companies, the comparison may not be statistically meaningful. Senserity flags when the sample size is small so you can weigh the result accordingly.

SIC code accuracy. Peer grouping relies on the SIC code the company has registered at Companies House. Some companies have outdated or inaccurate SIC codes that do not reflect their actual business. This can place them in an inappropriate peer group.

Sector-wide problems. If an entire sector has poor governance or high insolvency rates, peer benchmarking will show a company as "typical" even though its absolute risk is high. The absolute risk score and grade remain the primary assessment. Peer benchmarking is a supplementary lens, not a replacement.

Data coverage varies. Financial data availability differs by company size and filing type. Benchmarks that involve financial figures are most reliable for companies that file detailed accounts.

Peer benchmarking is most valuable when used alongside the absolute risk score, not instead of it. A company that scores well relative to its peers but has an overall grade of D still warrants attention.

Last updated 29 April 2026.